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Consumer preferences for automobile energy-efficiency grades

Author

Listed:
  • Koo, Yoonmo
  • Kim, Chang Seob
  • Hong, Junhee
  • Choi, Ie-Jung
  • Lee, Jongsu

Abstract

Recently, increases in energy prices have made energy conservation and efficiency improvements even more essential than in the past. However, consumers experience difficulty in obtaining reliable information regarding energy efficiency, so that many countries have implemented regulations to enforce energy-efficiency grade labeling. In this study, consumer preferences regarding energy efficiency grades are analyzed by the mixed logit and MDCEV model based on the revealed preference data of past automobile purchases. Findings show that consumers rationally apply information on energy efficiency grades when purchasing automobiles. However, they tend to show inefficiency in automobile usage patterns. This study discusses political implications of energy efficiency policies as they might impact consumer behaviors of automobile purchase and usage.

Suggested Citation

  • Koo, Yoonmo & Kim, Chang Seob & Hong, Junhee & Choi, Ie-Jung & Lee, Jongsu, 2012. "Consumer preferences for automobile energy-efficiency grades," Energy Economics, Elsevier, vol. 34(2), pages 446-451.
  • Handle: RePEc:eee:eneeco:v:34:y:2012:i:2:p:446-451
    DOI: 10.1016/j.eneco.2011.12.012
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    References listed on IDEAS

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    1. Bhat, Chandra R., 2005. "A multiple discrete-continuous extreme value model: formulation and application to discretionary time-use decisions," Transportation Research Part B: Methodological, Elsevier, vol. 39(8), pages 679-707, September.
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    5. David Revelt & Kenneth Train, 1998. "Mixed Logit With Repeated Choices: Households' Choices Of Appliance Efficiency Level," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 647-657, November.
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    Cited by:

    1. Michelsen, Carl Christian & Madlener, Reinhard, 2016. "Switching from fossil fuel to renewables in residential heating systems: An empirical study of homeowners' decisions in Germany," Energy Policy, Elsevier, vol. 89(C), pages 95-105.
    2. Voltes-Dorta, Augusto & Perdiguero, Jordi & Jiménez, Juan Luis, 2013. "Are car manufacturers on the way to reduce CO2 emissions?: A DEA approach," Energy Economics, Elsevier, vol. 38(C), pages 77-86.
    3. repec:gam:jsusta:v:9:y:2017:i:10:p:1921-:d:116212 is not listed on IDEAS

    More about this item

    Keywords

    Mixed logit; Mixed multiple discrete-continuous extreme value; Energy efficiency grade;

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions

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